2 TUESDAY , JULY 11 , 2017
Vox pop
Can export of food crops improve economy ?
• Mr . Muda Yusuf ( Director-General , Lagos Chamber of Commerce and Industry )
There is a need to get our priorities right . The major pre-occupation of the agriculture ministry at this time should be how to improve productivity in agriculture . The sector is still largely dominated by smallholder farmers that do not have the capacity to support the realisation of our vision for self-sufficiency and food security for the country . The sector is grappling with serious issues such as high cost of farm inputs , including agrochemicals , high cost
With regard to diversifying the export base of Nigeria , there is unanimity of opinion that it is long overdue . This economy , given its import-dependent nature , needs multiple streams of foreign exchange to maintain adequate reserves and stabilise the exchange rates .
Moreover , it is also consistent with the macro objective of balance of payment equilibrium . In this light , exports are desirable . Nevertheless , the idea of exporting yams at a time inflation is on the rise despite the marginal drop in core inflation , is tantamount to putting the cart before the horse .
Data from the National Bureau of Statistics indicate a high rate of inflation in the cost of food even in states that surround Benue , where the bulk of the yams are produced . Until we achieve self-sufficiency in food production , it would be counterproductive to attempt to enter foreign markets in search of forex .
Without a doubt , exchange rate stability can also be pursued from the demand side through import substitution and patronage of locally made products . On the supply side , export of solid minerals would make better sense at this material time .
So , rather than promote the export of
of agricultural machinery and equipment , access to land for mechanised farming ; access to finance , especially working capital , by investors in the sector . There is also the issue of security challenges faced by farmers because of the activities of herdsmen and many more . These are the issues I expect the agriculture ministry to be tackling at this time .
Of course , it is possible to generate substantial foreign exchange from the export of food items , but the productivity issue must first be addressed . We need to structure the sector to attract the elite and younger generation of investors into agriculture and the totality of the value chain . The reality is that the farming population is aging fast . There is also a critical social dimension to the yam export story .
The biggest worry of the majority of our citizens is the current high food prices . The negative welfare effect is profound and creating a social stability risk for the country . It is taking a toll on the political capital of the current administration . It is , therefore , difficult to reconcile this reality with the dramatisation of the exportation of yam . It is good to generate foreign exchange , but we have a major responsibility to respond urgently to the problem of hunger occasioned by the high cost of food .
• Dr Uche Uwaleke ( Head , Banking and Finance Department , Nasarawa State University )
primary food products , we should be more concerned with processing them into semifinished or finished products for , first and foremost , a large market such as ours . By so doing , we create job opportunities along their value chain through Small and Medium Enterprises , grow Gross Domestic Product and bring down inflation .
• Dr Enang Udah , ( Lecturer , Department of Economics , University of Calabar )
N igeria ’ s economy can improve through the exportation of food crops . The role of agriculture in the transformation and development process of a country is like an engine in improving the general well-being of its people . Agriculture sector is the basic source of livelihood for more than 50 per cent of Nigeria . It is the vital aspect of our domestic economy providing sustenance for a majority of the citizens .
Food crop production plays an integral role in Nigeria ’ s economic and social development , contributing valuably to employment , food security , household income , poverty reduction and foreign exchange . It is low food production in Nigeria that is responsible for the import of over 70 per cent of our staple food . This has made the nation vulnerable to global food price volatility as some experts have noted .
Cassava , rice and palm oil are all grown in Nigeria . Today , palm oil is traditionally for the domestic market . Rice is another staple food crop that we have been importing in large quantities instead of exporting . Our country has fertile soil for rice and other crops , fruits and nuts which have huge markets abroad . Over the years ,
Government has been putting a lot of effort towards diversifying the production base of the economy so as to improve our export earnings . To this extent , the decision to begin the export of our food crops is one aspect through which we can improve foreign trade and strengthen our exchange rate . Over the years , we have been depending solely on crude oil exports as our major source of foreign exchange earnings . If the tempo of food exports can be sustained , it can mark the beginning of an improvement in the terms of trade and we can diversify from commodity export to , maybe manufacturing of goods for export .
We should not relax because we do not have competitive advantage ; we only have comparative advantage in certain products . So , we need to improve on the competitive advantage and that will require us to improve on our infrastructure , which for now is a major impediment to achieving our competitive advantage . In all , it is a good beginning for us that we have started exporting some of our food crops .
the nation has preferred importation as against supporting smallholder farmers and expanding export production .
Among other factors , the major obstacle in the production of food crops is that , smallholder farmers and cooperatives lack capital , machinery / technologies and professional expertise to independently increase the productivity of their farms .
The economy of any nation based on agriculture can improve if food crop production receives serious attention . This was how America and other nations achieved development before the use of modern technology .
Considering the economic theory of comparative advantage from international trade , which arises from differences in the factor endowment applied by the country to determine the goods and services , they ( the government ) should specialise in producing . The history of the United Kingdom , United States of America and Japan are clear evidences that food crops have helped to a greater extent in the process of industrialisation .
• Mr . Olusegun Dasaolu ( Chairman , All Farmers Association of Nigeria , Ogun State chapter )
Export of food crops by Nigeria to other countries will definitely improve the country ’ s economy . First , it will improve the foreign exchange earning of the country and this will lead to an increase in our foreign reserves .
Secondly , this will lead to improved earnings for the farmers , because they will begin to earn foreign exchange for their farm produce . We are a nation that is import-dependent . We import food items , including items as small as toothpicks .
If • you recall , agriculture used to be one of the most important components of our economy . This was evident in cocoa produce and the groundnut pyramids . The country lost this when the oil boom came . It is highly commendable that this administration has picked agriculture as the veritable replacement for oil .
Exporting some of the country ’ s food crops will expand the nation ’ s food production levels .
Farmers ’ would earn foreign exchange which they could use to procure machinery to boost their production level by the time they embrace mechanised farming .
Once we have this shift to farming , agriculture would help greatly in revamping the nation ’ s ailing economy .
Nigeria has the land , the weather is conducive and we have the human resources in abundance . If we get it right , Nigeria will not only produce enough food to feed West Africa , but the whole of the continent and beyond .
• Dr Victor Chidiebere ( Vice Principal , Administration , Assemblies of God Bethel Seminary , Nekede , Imo State )
• Compiled by : Success Nwogu , Mudiaga Affe , Okechukwu Nnodim , Samuel Awoyinfa and Ifeanyi Onuba